The Minneapolis-based utility said Monday it lowered its proposed rate increase to 8.2 percent.

Xcel proposed a rate hike of 10.7 percent in November. Xcel Energy cites changed circumstances since its original request. The revised proposals reduce the utility's requested rate increase to about $220 million, down from $285 million.

Minnesota officials had urged state regulators to slash Xcel Energy's original request, citing "rate shock" among customers. The state Commerce Department recommended a smaller rate hike of about 3 percent to 4 percent.

Judy Poferl, president and CEO of Northern States Power Co.-Minnesota, an Xcel Energy company, says the revised request allows the utility to make upgrades while reducing the size of the requested increase for customers.

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